Wednesday, April 15, 2009
Believe It Or Not
The market just continues to grind higher day after day. Today we saw the market do just about nothing until the last hour of the day where the market rallied straight up to 850. You continue to see bullish price action and it seems like the shorts remaining in the market are looking for a few days of pullback to cover their shorts and that sends the market higher. This is the opposite of how it worked in the last year, where everyone was net long and panickly sold into each rally that eventually faded. I keep hearing bearish sentiment on the street and on tv and that's exactly why I think we arent done with this rally that started almost 6 weeks ago now. As long as people do NOT believe in the move, then IT WILL continue until all are aboard the "long" train.
For Thursday I want to have a bullish bias and I think if the econ data and JPM numbers in the morning come in half way decent then we could rally past the recent highs and attack that 875 area. The pivot for Thursday is 843.75 and as long as we stay above it then I expect upside. Below that and we could see some more churning until a break of 835 releasing further selling.